Oracle Hyperion Financial Management (Oracle HFM)

Oracle Hyperion Financial Management is a financial and management reporting consolidation system designed for large companies and holdings, for companies that prepare different types of reporting, as well as for companies using the Oracle accounting system.

Oracle Hyperion Financial Management is one of the few products designed specifically to solve the tasks of consolidation and transformation of reporting. It has built-in financial logic and is customized according to the needs of a particular company.

Oracle Hyperion Financial Management Software Product reduces the labor required to prepare high-quality financial statements by automating most steps in the data consolidation process.

Oracle Hyperion Financial Management and Compliance

Perhaps the main problem for the financial service in providing data is the dynamically changing reporting requirements. You can classify these requirements into groups of final reporting users. The main such groups include:

• a state defining its reporting requirements through regulations;
• investors who require, as a rule, forward-looking reports and reports that comply with IFRS principles;
• top managers, whose requirements include the ability to deeply detail individual articles of reports on analytical classifiers, for example, sales in the context of product groups, counterparties, and conduct various types of analysis, including scenario;
• Heads of individual departments with specific requirements, for example, the possibility of tax planning for different scenarios of acquisitions of companies.

Oracle Hyperion Financial Management allows you to distinguish between different types of data in the system by separating them into scenarios. For example, the scenarios "Actual under IFRS," "Actual under RAS," "Budget," "Forecast," etc., will contain relevant data. Oracle Hyperion Financial Management applies different automatic calculations to different scenarios. As a result, different scenarios can provide for different depth of detail of articles, use different exchange rates, different frequency of data. For example, for the fact under IFRS, a step in a quarter can be used, and for the operational budget - in a month. For different scenarios, users can set up different forms of final reporting.

Transformation with Oracle Hyperion Financial Management

Before proceeding with the actual consolidation of financial information, the holding's financial service must first collect data from various accounting systems, convert the data into a single model - the chart of accounts and analysts used Oracle in Hyperion Financial Management, and, as a rule, make a number of additional data adjustments to, for example, obtain reports on. IFRS

Combined with the optional Oracle Hyperion Financial Data Quality Management software module, Oracle Hyperion Financial Management automatically extracts data from accounting systems in any detail and converts it into a single model using mapping tables. If you continue to work with data in Oracle Hyperion Financial Management, you can drill down the numbers contained in the system to specific transactions in the accounting system of the data source enterprise.

Oracle Hyperion Financial Management uses the log management mechanism for the purpose of subsequent data transformation. The journal in Oracle Hyperion Financial Management can be compared to a posting in an account system - it is usually a balanced entry that determines the amount of adjustment for different accounts. Users create logs and send them to the manager for approval. Once agreed, adjustments are applied to the relevant accounts. Consolidation with Oracle Hyperion Financial Management.

Oracle Hyperion Financial Management helps you with many routine reporting consolidation tasks, which are the sources of many errors caused by manual calculations and dynamic changes in the financial structure. So, Oracle Hyperion Financial Management automatically:

• determines minority shares for all holding enterprises, including if cross-ownership exists within the holding between subsidiaries;
• Defines the consolidation method for all holding entities, for example, "subsidiary," "joint venture," "dependent entity," etc.;
• calculates goodwill from the acquisition;
• Translates data into different currencies and accrues a currency reserve (CTA)
• reconciles and excludes intragroup turnovers based on the assigned consolidation method;
• aggregates data from subsidiaries based on the assigned consolidation method.

These procedures can be fully automated if the acquired company's ownership and balance sheet are automatically imported from accounting systems at the date of acquisition. Process management in Oracle Hyperion Financial Management.

Oracle Hyperion Financial Management automates the process of data collection, transformation, and subsequent consolidation of reporting. Individually configurable process steps allow you to structure the sequence of necessary actions and correct errors associated with manual data entry in time.

For each process step, you can define individual account blocks that are loaded and processed in the system. This is useful in terms of the sequence in which accounts are closed in accounting systems. For example, a process may consist of three main steps:

• Import and process detailed sales data (data is usually ready on the 2nd day after the end of the reporting period)
• Import and process the balance sheet (usually available on Day 5)
• Import and process intergroup transaction details (usually available until the 10th day)

At each stage, the data has a reconciliation status - "in process," "approved," "rejected," which is determined by:

• The status assigned by the user, for example, "approved.
• readings of verification accounts, for example, convergence of the balance sheet, equality of counter-account movements, equality of dependent accounts of the income statement, discrepancy of intra-group turnover;
• Need for Computation - Oracle Hyperion Financial Management determines the need for computation based on factors such as additional data loading, historical recalculation, and other actions that may have affected data integrity.

After the stage is finally closed, the data is "closed" and cannot be changed by user actions or additional calculations until the status is changed by the administrator. Thus, reporting users can always be sure that:

• all checks during the process showed the desired result;
• All necessary data transformations have been performed.
• responsible persons independently approved the final figures.

At the same time, the administrator can fully track the history of changes in data and user actions in the system, which reduces the cost of auditing reporting.

Oracle Hyperion Financial Management

One of the main advantages of Oracle Hyperion Financial Management is the user's independence from the enterprise IT service. When using Oracle Hyperion Financial Management, these services only perform system administrator functions for servers hosting Oracle Hyperion Financial Management. The finance department specialists can perform operations to make changes to the system on their own. Examples of tasks that do not require the participation of the IT service:

• Adding a new enterprise to the reference book on purchase
• Change calculation settings for different process steps/scenarios
• development of a new report;
• adding a new user to the system, etc.